An empirical investigation on the effect of Non Audit Services on the independence of the auditors

Shukla, Meenakshi (2013) An empirical investigation on the effect of Non Audit Services on the independence of the auditors. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

The following research makes an attempt to understand whether the independence of the auditor’s is impacted due to the provision of Non audit services by them. Data of the FTSE 100 companies over a period of 5 years (2008 to 2012) is studied for the same. To understand this complex relation, two hypotheses are built and regression analysis is done on them.

The first research question investigates the relationship between the audit and non audit fees. A positive association between them is predicted. The second research question, on the other hand, deals with the level of auditor’s tenure and non audit services provided by them. Higher non audit services would be related to longer auditor tenure.

A positive and significant relationship between the audit and the non audit fees is observed from the results of the first test, thus confirming the first hypothesis. The lack of variability in the data precluded the researcher for obtaining a definite result for the second hypothesis. Thus, no relationship between the auditor tenure and the non audit fees could be determined. The results of the overall tests suggest that due to the provision of the non audit services, there exists a possibility of lack of auditor independence-in-appearance. However, no evidence could be found for lack of auditor independence-in-fact.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 24 Feb 2014 12:44
Last Modified: 25 Oct 2016 22:51
URI: http://eprints.nottingham.ac.uk/id/eprint/26755

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